Ivanhoe begins reopening western Kakula as shares surge

Ivanhoe Mines shares surged on progress towards reopening part of its flooded Kakula copper mine in the Democratic Republic of Congo, even as the company stopped short of giving a firm timeline for a full restart.

The stock climbed as much as 8.7% in Toronto trading after Ivanhoe confirmed management was working with engineers "to safely and conservatively restart mining operations." By early afternoon, shares remained 5.2% higher, outperforming sector peers. Underground mining was expected to resume later in the month on the western side of the Kamoa-Kakula complex, with a comprehensive plan for the eastern section, where flooding had been most severe, due to follow within days.

Watched by the whole market

Kamoa-Kakula, recognised as one of the world's most significant copper mines, had been closely watched by investors and metal markets since seismic activity triggered extensive underground flooding a fortnight earlier. The incident added to a run of supply-side disruptions that had already been tightening global copper availability through 2025, giving the mine's recovery outsized significance for the broader market. Ivanhoe's Chinese partners, Zijin Mining Group and Citic Metal, were assisting with the restart planning alongside Ivanhoe's own engineering teams.

Cautious optimism

The rebound in Ivanhoe's share price reflected relief that at least part of the complex could resume production relatively quickly, rather than confirmation that the crisis had passed. Analysts remained wary of the eastern section, where the bulk of the flooding had occurred and where dewatering was expected to take considerably longer. Getting the western side running again would restore some cash flow and buy the company time to properly assess and plan the more complex rehabilitation required in the east.

The measured, phased approach previewed here — resume what can safely be resumed, then plan carefully for the rest — would become the template for Ivanhoe's recovery strategy over the following year, as the company moved through successive stages of dewatering rather than attempting a single, faster fix. Kamoa-Kakula's Chinese and Congolese partners were kept closely informed of the plan, a sign of how much diplomatic as well as engineering care Ivanhoe was investing in getting the restart right the first time.

Sources

• Miningmx: Ivanhoe to reopen sections of Congo's Kamoa-Kakula, 03 Jun 2025

Photo: Malachite copper ore from the Democratic Republic of Congo's copperbelt. Kritzolina, Wikimedia Commons, CC BY-SA 4.0.